CBN Injects Fresh $195 Million Into Forex Market

The Central Bank of Nigeria has, on Tuesday, March 14, 2017 released fresh $195 million into the foreign exchange, FOREX, market as part of its wholesale intervention to ensure liquidity in that segment of the market.

The release was confirmed in a statement signed by Isaac Okoroafor, the spokesperson of the Central Bank.

Okoroafor said that the intervention of $195 million is made up of $150 million for the wholesale auction and $45 million in the invisible segment for such items as medical fees, tuition fees, Personal Travel Allowance and Business Travel Allowance.

“The Central Bank of Nigeria on Tuesday, March 14, 2017, sustained the supply of foreign exchange to the market by concluding arrangement to release the sum of $195 million comprising of $150 million for the wholesale auction and $45m in the invisible segment for such items as medical fees, tuition fees, Personal Travel Allowance and Business Travel Allowance,” the statement said.

Okorafor, said that the apex bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.

He also alluded to the fact that deposit money banks were becoming saturated with foreign exchange as most of them are now able to meet demands for foreign exchange within the stipulated time frame.

“As you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forex,” he said.

He reiterated the apex bank’s determination to continue to fund the importation of raw materials and plant and machinery for manufacturing, agriculture, and other eligible items.

He also assured that the CBN remained resolute in ensuring stability in the forex market by keeping an eye on the activities of authorised dealers in order to ensure sharp practices are reduced to the barest minimum.